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There's a finance angle behind cloud stuff too that's irrestible for the bean counters: cloud stuff is operations expense, on-prem is a capital expense. Unfortu
by tomc1985 4y ago
There's a finance angle behind cloud stuff too that's irrestible for the bean counters: cloud stuff is operations expense, on-prem is a capital expense. Unfortunately these folks are heavily incentivized to favor OpEx
I'm not a bean counter, all I know is those guys at my last job would rattle off about it like zombies. IIRC its a tax thing
- jscheel 4y agoOpex is fully deductible each year the expense occurs, wheras capex requires amortized depreciation over the life of the purchased item. Makes it harder to calculate taxes.
- goodpoint 4y agoWrong. People has been leasing on-prem hardware for decades before the cloud existed. Depending on taxation rules you might want to buy or lease.
- tomc1985 4y agoAt this employer it seems most of the stuff in their datacenter was purchased.
- morelisp 4y agoIt's not a tax thing, long-term leases or colocation is a liability for acquisitions. (You could also build a revenue-positive company, but that's the loser way out, apparently.)